Market Recap – Tuesday, June 3, 2025
Stocks Rise on Positive Earnings and AI Growth
US stocks rose on Tuesday, with the S&P 500 and Nasdaq recovering from early losses to finish higher for the second day in a row. The Dow gained 0.51%, the S&P 500 rose 0.58%, and the Nasdaq went up 0.81%. Smaller companies also did well, with the Russell 2000 jumping 1.59%. Stocks tied to artificial intelligence (AI), semiconductors (like Nvidia), and dollar stores (like Dollar General) were some of the biggest winners. Google was the only big tech stock that didn’t do well.
Economic Data
The JOLTS report showed that job openings in April were higher than expected at 7.4 million, suggesting a healthy job market.
Factory orders for April dropped by 3.7%, more than analysts predicted, but the auto sales data expected later today could provide more insight into consumer spending.
Fed Comments
Several Federal Reserve officials shared their thoughts, saying they’re cautious about cutting interest rates too soon. They also warned that tariffs (taxes on imports) could slow down economic growth and lead to inflation, or “stagflation.”
Notable Stock Moves
Dollar General (DG-US) jumped nearly 16% after reporting strong sales and raising its guidance for the year.
Ferguson Enterprises (FERG-US) rose 17% after exceeding expectations with its sales and profits.
Sitio Royalties (STR-US) gained 15% as it announced a big acquisition by another energy company, Viper Energy (VNOM-US).
Credo Technology (CRDO-US) was up 14.8% after it posted strong earnings and an optimistic outlook.
Sector Performance
AI and tech-related stocks like Nvidia continued to perform well, reflecting strong demand.
Retail stocks like Dollar General had a strong day, while sectors like pharmaceuticals and industrial materials were weaker.
Bitcoin went up 1.7%, while gold dropped 0.6%.
Trade and Politics
There’s a lot of attention on a potential call between US President Trump and Chinese President Xi later this week. Trade tensions have been rising as both sides continue to push their interests. President Trump also made headlines by threatening Apple with a tariff unless they start making iPhones in the US, which added to concerns about tariffs affecting businesses.
Looking Ahead
Tomorrow, the ADP private payrolls report will give more insight into the job market, and we’ll also see the May NFP report on Friday. No major changes in the Fed’s policies are expected, but they’ll continue to monitor inflation and the economy closely.
Earnings Reports to Watch
Crowdstrike (CRWD-US) and HP Enterprise (HPE-US) will report their earnings later today.
Dollar Tree (DLTR-US) will report tomorrow morning.
Other important reports this week include Lululemon (LULU-US) and DocuSign (DOCU-US).
Here’s Our Take
Stocks: Stocks are higher, especially in AI and tech-related sectors, thanks to strong earnings reports.
Economic Data: Job openings are strong, but factory orders dropped. This mixed picture will be clearer with upcoming job reports.
Fed Policy: The Fed is cautious about making quick changes to interest rates and is keeping a close eye on inflation and tariffs.
Trade: Trade talks with China are back in focus as President Trump threatens new tariffs, including on Apple, which could have broader market effects.
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